Tink, the Swedish open banking provider, has landed a second strategic investment from PayPal, as well as expanded its partnership with the US payments giant to support more of its European advances under the Second Payments Directive (PSD2).
Tink’s CEO Daniel Kjellen and CTO Fredrik Hedberg
PayPal will now work with Tink to cover all countries within the European Economic Area (EEA), integrating Tink’s open banking and account aggregation technology for European PayPal users previously not covered by the partnership.
The strategic investment marks PayPal’s second in Tink to date, the first having been made in June 2019. This investment – the value of which was not disclosed – will be added to Tink’s latest €90 million investment round which took place in January 2020.
The US payments giant serves 330 million consumers and merchants in more than 200 markets worldwide. Tink currently connects to more than 2,500 banks, tapping more than 250 million bank customers across Europe. The fintech also counts Klarna, NatWest, ABN AMRO and BNP Paribas among its users.
Speaking to Electronic Payments International, Tink’s UK and Ireland country manager Rafael Plantier said: “Some financial institutions have missed a trick by approaching open banking purely as a PSD2 compliance issue, rather than a strategic initiative that concerns the broader organisation and can create value for both business and customers alike.”
At the end of March, the fintech acquired Madrid-based Eurobits technology, a firm which provides account aggregation services, for €15.5 million. Part of the start-up’s organic growth strategy following its €90 million investment in January, Tink acquired Eurobits to expand its connectivity across Europe.
In December, Tink also opened Italian, Portuguese and Spanish offices, following a major deal with Portugal’s largest bank, Caixa Geral de Depósitos.
Read next: Nordea partners up with Tink on open banking
Source: https://www.fintechfutures.com/2020/06/tink-lands-second-strategic-investment-from-paypal/
